Zero-Down Payment Car Loan

A car loan where the borrower does not need to make any down payment is known as a zero down payment car loan. In such loans, the bank or the lending institution offers to fund the entire value of the car and hence, these loans are sometimes also referred to as ‘100% Finance’. A zero down payment car loan is ideal for anyone who wishes to purchase a car but does not have enough funds to make the down payment. Down payment is the initial amount charged by certain banks which is a certain percentage of the car value, to the borrower before the car loan is released. Before we tell you all about zero down payment car loans, let us first understand how down payments affect car loans.

How Does Down Payment Affect the Total Cost of a Car Loan?

As stated above, down payment is the initial payment made towards the purchase of any expensive article, which, in this case, is a car. It is typically set as a certain percentage of the car’s value while the balance can be paid by taking a car loan. Down payments are required by the seller usually to validate your financial credibility which will give them some assurance. Paying a substantial amount as a down payment reduces the amount of loan that you need to avail and, in turn, lower the interest rates and the EMI (Equated Monthly Instalment) amount. A large down payment will increase your chances of securing a loan and also allow you to repay it in a shorter time.

However, what happens if you are unable to or do not wish to make a down payment towards the purchase of a car? This is where zero down payment car loans can come in handy.

Features of Zero Down Payment Car Loans

These car loans do not require you to make any down payment as the bank or the lender will fund the entire cost of the car.

Accessories of the car will not be covered by the zero down payment car loans.

To avail zero down payment car loans, a good credit track record is a must.

Borrowers may have to pay loan processing fees to the lender while availing the zero down payment car loans.

To avail a zero down payment car loan, you should make sure that the amount of car loan should not exceed your net yearly income.

Top Lenders Offering Zero Down Payment Car Loans

HDFC Bank Car Loan– Private sector lender HDFC Bank offers up to 100% funding with its car loans. Existing customers of HDFC Bank have higher chances of approval for the zero down payment car loans. The process will also require minimal paperwork and the loan will be approved and disbursed quickly. Borrowers may have to pay a small percentage of the loan amount as processing fee which may vary depending on road tax, state registration, and insurance.

ICICI Bank Car Loan – Zero down payment or 100% finance is available under car loans offered by ICICI Bank. The car loan comes with longer repayment tenures of up to 7 years, affordable interest rates, instant approvals, and quick processing. Foreclosure and pre-payment facilities are available on the ICICI Bank car loan.

Axis Bank Car Loan – 100% funding on the car’s ‘On-Road’ Price is offered by Axis Bank on its car loans. The loan amount starts from Rs.1 lakh and comes with affordable interest rates starting from 9.25% onwards. The bank also offers the longest repayment tenures of up to 8 years on its car loans. The car loans offered by Axis Bank allows part-prepayment and foreclosure with applicable charges.

Car Loan Eligibility Criteria for 100% On-Road Finance

The applicant must be 25 years or above.

He or she must have a CIBIL score of 800 or above with no negative loan repayment history in the credit report.

The applicant must have a minimum annual income of Rs.3 lakh. The car loan amount will not be more than the applicant's net annual income. Existing loan EMIs plus the proposed loan EMI must be less than 50% of the applicant's salary.

He or she must be a salaried employee or a self-employed person with minimum 3 years of work experience.

The applicant's bank balance must be minimum 3 times the proposed loan EMI.

No cheque return history in the last 6 months in the applicant's salary account or business current account.

The applicant should be residing at the provided address for minimum 2 years.

To find out if there are reliable zero-down payment auto finance available in India, do some research online. If there are zero-down payment car loan offers, check if you meet the eligibility criteria. Focus on improving your credit score by making regular EMI payments and credit card bill payments on time. Another method of improving your credit score is by balancing secured and unsecured loans.

Documents Required for availing Zero Down Payment Car Loans

Here is a list of documents that an applicant must furnish along with a duly-filled and signed car loan application form:

For income proof, the applicant can submit the company ID card, salary credit in bank statement, Form 16 (in the case of a salaried employee) and VAT or ST registration with current account statement (for a self-employed individual).

For address proof, he or she can submit homeownership deed.

For identity proof and age proof, the applicant can submit PAN card, Passport, Aadhaar card, and recent passport-sized photographs.

Previous loan or vehicle ownership documents like RC of old car and loan agreement.

Income proof for a salaried employee can include last 2 years’ Form 16, last 3 months' payslips, and last 6 months' salary account bank statement. Income proof for a self-employed individual can include the last 2 years' ITR, last 6 months' current account statement, Sales Tax certificate, Service Tax certificate, and VAT certificate.

How to Avail a Zero Down Payment Car Loan ?

You can avail car loans from different lenders through BankBazaar by following the below-given steps:

Visit the official website of BankBazaar.

Under the ‘Loans’ tab, click on the ‘Car Loan’ tab.

You will be redirected to a page displaying a list of banks/financial entities offering car loans.

You can click the ‘Explore’ button to know about the features offered by the car loans of various banks and compare it.

Once you have decided the lender, you can click on the ‘Get Approval’ or ‘Apply Now’ button to initiate the car loan application process.

After the submission of application, an e-approval form will be sent to you instantly. In the meantime, the bank you have applied for the loan from will also be sent the application.

Once the bank receives the application, they will call you to complete the remaining process.

News About Zero-Down Payment Car Loan

Hyundai Santro Earns Nomination for World Car of the Year 2019

The Hyundai Santro has been nominated for the World Car of the Year 2019 under the Urban Car category. Following the recent relaunch of the old classic, the 2019 Santro has done exceedingly well in the Indian car market. The car has been priced at Rs.3.89 lakh (ex-showroom) and the bookings and sales for the hatchback are still going strong. The Santro comes with a 1.1-litre petrol engine that is available in a manual and automatic transmission option. Additionally, it is also available in a CNG variant.

The results of the World Car of the Year will be announced at the Geneva Motor Show in March 2019 and the Santro will face off against a number of vehicles.

27 February 2019

MG Motor India announces tie-up with car sharing company Myles

MG Motor India has now announced their tie-up with Myles, one of the big players in the car sharing service. This move has been done as part of the generation mobility solutions strategy opted by the company. The tie-up is expected to be valued at more than Rs.250 crore initially and help introduce MG cars with innovative car ownership solutions as part of the partnership with Myles. The new tie-up will give the customers the option to experience the new SUV to be launched by the company on a subscription basis. Customers can book test drives and avail other benefits using the Myles platform. The SUV named The Hector will start the journey of MG Motors in India. The car is expected to launch in the country sometime in the second quarter this year. The cars will be produced at the manufacturing facility based in Halol. The company has also announced that they are planning to use this subscription service in their next car as well. The next car to be launched by the company is expected to be an all-electric vehicle and will be launching sometime in the end of the year 2019.

28 January 2019

Hyundai i30 test spied in Chennai

In the global market, the Hyundai i30 is positioned above the i20. It was spied being tested on the Chennai roads recently. Among the many features of the i30 are the following: alloy wheels that are 17 inch and double spoke, panoramic sunroof, TFT instrument cluster, ventilated and heated seats, DRL and LED headlamps, and touchscreen infotainment system. There is an electrically adjustable driver’s seat which has 10 modes of adjustment. There will be both diesel and petrol versions. Both will have 6-speed manual and automatic transfusion. The petrol engine will offer 157 Nm torque and 118 bhp power while the diesel engine will have 157 Nm torque and 134 bhp power.

4 December 2018

2019 Range Rover Evoque SUV unveiled, expected to launch in India next year

The new generation Range Rover is taking design inspiration from one of its elder sibling, the Velar. The 2019 Range Rover Evoque is based on all new platform. The new platform has not only made the new Range Rover Evoque much lighter and efficient than its predecessors but has made vehicle compatible for hybrid engines other than the regular petrol and diesel options. Confirmation has been provided by Range Rover that the new 2019 Evoque SUV will be compatible for hybrid engines. The new generation Range Rover Evoque 2019 will be available to order in the UK where the prices will be starting at £31,600, which will approximately be around Rs.28.5 lakh. This will be excluding the tax and import duty. It is expected that the Land Rover India will be looking to launch the 2019 Evoque sometime in the coming year. The new generation Range Rover Evoque will come with flush door handles, a super slim matrix LED lights, sweeping directional indicators with an option to add burnished copper details and R-Dynamic details which will make the compact SUV much more appealing than before. The 2019 Range Rover Evoque has also got upgrades in terms of materials and trim design. Other than this, technical textiles using recycled plastics are offered as an alternative to leather. The cabin will come with a twin touchscreen Touch Pro Duo system that will new and faster 16 way seat controls and cabin air ionisation that go well with the increased interior space. The new infotainment will also come equipped with Android Auto and Apple Car Play connectivity. The new Evoque will compete with the like of the Volvo XC40 and Audi A3.

29 November 2018

Former Hyundai Executive to Join JSW Energy for Its EV Venture

The former Director for Sales and Marketing at Hyundai Motor India, Rakesh Srivastava, will be joining the Sajjan Jindal-promoted JSW Energy to help the company in its efforts of venturing the electric vehicle industry. As per those who are aware of the situation, Srivastava will be a part of the senior leadership team that is in charge of preparing the blueprint for helping the JSW Group achieve its automotive ambitions. The JSW Group - which runs the second-biggest private steel business in India - might invest up to a billion dollars in the next 4-5 years for the development of the company’s products for the electric vehicle segment. The JSW Group has joined hands with multiple Chinese car manufacturers for its foray in the electric vehicle sector. The organisation is currently in talks with numerous state governments, including the Government of Gujarat and the Government of Maharashtra, for the establishment of a manufacturing facility. Sergio Rocha is already on board as the Chief Operations Officer of the Electric Vehicles unit under the Passenger Vehicles department at JSW Energy. Prior to joining JSW Energy, Rocha was heading the South Korean operations of General Motors out of Seoul. Interestingly, the company had recently held negotiations with the US carmaker for the acquisition of its Talegaon facility located in Maharashtra.

While JSW Energy had initially planned of entering the passenger car market with an electric vehicle after the onset of 2020, it decided to increase its scope of entry into the automotive sector by adding a range of commercial vehicles such as trucks, small trucks, and buses. Srivastava is an alumnus of IIM Ahmedabad, and has spent more than a decade and a half at Maruti Suzuki. After that, he has worked at Hyundai Motor India for 6 and half years, while helping the company transition from being a small car specialist to an automobile manufacturer that can penetrate the mid-size and premium car segment of the Indian market. Under Srivastava’s leadership, the sales of Hyundai Motor India hiked to 5.55 lakh units in 6 years from the previous 3.65 lakh units.

2 November 2018

Tata announces the discount offers for the festive season

Tata Motors has recently launched the festive season offers. The campaign will be running till the end of October to ensure that every buyer of a Tata car is able to get a gift of worth up to Rs.1 lakh. In addition to this, a lucky draw will also be held wherein the customers will stand a chance to win a brand new Tata Tigor every week.

The campaign has been named as the ‘Festival of Gifts’. The campaign is up and running across all dealerships in all states except for Madhya Pradesh, Gujarat, Maharashtra, and Goa. The lucky draw offer is also valid across all states except for Tamil Nadu. The assured gifts include LED TVs, iPhone X, gift vouchers from Tanishq, and so on. All the cars from Tata will be available under the ‘Festval of Gifts’ campaign including the recently launched Nexon, Tiago NRG, Nexon KRAZ, and Hexa.

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

Glad you're back!

Please provide some details to get the best offers. Deal?

We'll process your application faster too!

We don't spam or sell your details to annoying people.

Grab our newsletter!

Gain an edge by connecting with us via email. We promise never to spam you.

@

Uh-oh! Are you sure this email ID is Correct?

AWESOME SAUCE!

Request received - loud & clear!Returning you to where you were...

Psst... We'll ensure you're the very first to know the moment rates change.